Page 57 - Invited Paper Session (IPS) - Volume 2

IPS179 Wian B.
4. Settlement networks. The South African Multiple Option Settlement
(SAMOS) system forms the foundation of the settlement system.
Settlement system participants have an account at the SARB and are
required to post collateral, which ensures liquidity and the effective
functioning of the settlement system. Based on SARB (2018), the SADC
Integrated Regional Settlement System (SIRESS) facilitates cross-
border settlement among SADC countries, and is available to all
participating banks. In terms of international settlements, the rand is
accepted as currency within the continuous linked settlement (CLS)
system, which provides settlement service across central banks, real-
time gross settlement (RTGS) systems as well as payment netting
systems.
The focus of this paper will be on the population and subsets of retail
interbank EFT payments administered by BankservAfrica.

b) Remuneration Payments in South Africa
There are various pieces of legislation which separately governs certain
aspects of remuneration payments (both cash and electronic) in South Africa
which have important practical implications in terms of constructing a salary
(or remuneration) index. According to the amended Basic Conditions of
3
Employment Act No. 75 of 1997 (the BCE Act), the remuneration of employees
4
should adhere to the following requirements : (1) It must be paid out in rand
currency, (2) it must be paid on a daily, weekly, fortnightly or monthly basis,
and (3) it must be paid in cash, cheque or direct deposit.
A related legislative requirement is that said remuneration should be paid
within seven days of completion of the relevant work cycle or termination of
employment. Pension and provident fund payouts are not subject to the seven
day rule. Given that remuneration can be paid out in four different frequencies
and should be done within seven days of the last day of a wage or salary
period, transfers can technically occur on any day of the month. The procedure
to follow for weekends and holidays are not explicitly treated in the BCE Act,
although the majority of large employers make the necessary arrangements
to pay out salaries and wages earlier in cases where the original pay date falls
on a public holiday or weekend. Deductions that are legally required to be
withheld by employers from employees’ remuneration include income tax,
unemployment insurance and emoluments attachment orders.

3 The term “remuneration”, as per the BCE Act, is defined as “…any payment in money or in kind,
or both in money and in kind, made or owing to any person in return for that person working
for any other person, including the State…”
4 Members of the National Defense Force, National Intelligence Agency, the South African
Secret Service and unpaid volunteers are not subject to the BCE Act.
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